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Dick Smith receivership: 180 workers to lose jobs when doors to department store outlets close

ABC News ABC News 22/01/2016
Receivers have failed to find a long-term solution to keep Dick Smith's doors open after the electronics retailer went into voluntary administration.© AAP: Julian Smith Receivers have failed to find a long-term solution to keep Dick Smith's doors open after the electronics retailer went into voluntary administration.

More than 180 Dick Smith workers will lose their jobs, after the embattled electronics retailer decided to close its department store outlets.

The Dick Smith chain went into receivership earlier this month, owing about $400 million to creditors, who have yet to find out whether they will get any money back.

The receivers, Ferrier Hodgson, said the 27 concessions at David Jones stores throughout Australia must be closed, so they can restructure the business and try to sell it.

The Electronics Powered by Dick Smith outlets within David Jones employ two full-time employees, 78 part-time workers, and 101 casual staffers.

The outlets will close from next Wednesday, January 27.

Dick Smith Electronics was sold to Woolworths in the 1980s.

Woolworths then sold the underperforming firm to private equity group Anchorage Partners for $94 million in 2012.

But, by the end of 2013, Dick Smith had been listed on the ASX, with a market capitalisation of $520 million.

Anchorage Partners held on to 20 per cent of its stock in the firm, but sold out of Dick Smith entirely the following year.

The company collapsed in early January 2016, after a pre-Christmas fire sale failed to raise much needed cash.

Dick Smith employs more than 3,000 people in Australia and New Zealand.

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